The U.S. dollar starts 2025 strong, with the yen near five-month lows. Currency markets are preparing for U.S. interest rates to stay high for longer, and are awaiting policies from the incoming Trump administration. The dollar index is just shy of a two-year high, and the euro dropped over 6% in 2024. The Australian and New Zealand dollars started the year higher, but remain close to two-year lows.